Alphabet Inc GOOGL GOOG used to look like a tech company. Now it looks like an industrial giant with a balance sheet to match. In barely a year, Google's parent has leapt from a neat $11 billion in long-term debt to roughly $70 billion — a transformation that says more about the future of tech than any earnings call ever could.
How The Debt Blew Up This Fast
At the end of 2024, Alphabet was still a classic "capital-light" software behemoth: oceans of cash, minimal borrowing, pristine margins.
Then the AI arms race hit.
By late 2025, debt had already swollen to $46.5 billion, a 327% jump.
On Feb. 9, Alphabet layered on another $20 billion bond sale — plus a sterling century bond — pushing total debt near $70 billion. This isn't liquidity management. It's akin to war financing.
Why The Century Bond Really Matters
The 100-year bond is the sharpest part of this story. It hasn't been used by a major tech firm since Motorola in 1997 — a company that soon lost its dominance.
Alphabet's version functions like a financial "human shield": pension funds and insurers now have a direct stake in protecting Google from antitrust outcomes.
If the DOJ's breakup appeal succeeds, these bonds could suffer — turning global institutions into Alphabet's quiet defenders.
The $650B AI Infrastructure Tax
Alphabet isn't borrowing because it's weak; it's borrowing because AI is brutally capital-intensive. The company plans to spend $175 billion–$185 billion on capex in 2026, nearly double last year.
Alongside Amazon.com Inc AMZN, Meta Platforms Inc META, and Microsoft Corp MSFT, Big Tech is on track to spend $650 billion on AI infrastructure — more than America's largest industrial firms combined. Silicon is becoming steel.
The Confession Investors Can't Ignore
In its Feb. 4 10-K, Alphabet admitted that AI-powered search (Gemini AI etc.) could threaten its 90% ad-margin engine (Google Search).
That's the paradox: Wall Street is lending $100 billion to a company openly saying its core business might be disrupted by the very tech this debt is funding.
Tech isn't capital-light anymore — and Alphabet's balance sheet proves it.
Photo: Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
SPONSORED
Retirement can be a difficult part of life to navigate, and a financial advisor can help. Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now.
This article From $11B To $70B: Alphabet's Debt Explosion Signals The End Of 'Capital-Light' Tech originally appeared on Benzinga.com.
